Eric Schmidt on Innovation: Patents, Self-Driving Cars and Education

Last night I attended the AllThingsD interview with Eric Schmidt. Yesterday’s post focused on smartphones, this post will go through the second half of his discussion.

Patents
While Schmidt wasn’t willing to discuss specific patent fights, he did emphasize one point: The patent fights harm little companies the most since they don’t have the resources to fight patent claims. Small companies have created the most jobs and innovation and so patent disputes can cause great harm by harming them.

This seems true, though patent trolls probably only sue companies that have enough money to be able to pay them. Though perhaps large competitors could sue small companies out of existence, but I don’t know if that is too common. No matter what,he current patent system is pretty ridiculous.

Google and Self-Driving Cars
Swisher felt bothered that Google was involved in everything instead of just focusing on organizing information and called Google a Borg. She also said Google Glass is ugly and wasn’t so in to self-driving cars. Schmidt replied that they want to be in the center of the information revolution. But he said they should be celebrating innovation instead of dissing it.
He said that people shouldn’t really be driving cars and that self-driving cars will save many lives. Car companies will be able to implement components of Google’s technology in a few years, but their will still be a driver behind the wheel and a big red button to turn off automated driving. Also, Google Glass will provide new opportunities and experiences for people.

Clearly Google no longer just focuses on making information accessible  but now does all things software. I don’t see any reason to be bothered by that, as they seem to be doing a good job and provide basically everything or free.
Schmidt seemed to imply that humans will need to be monitoring the driving. People have a hard-enough time staying focused on the road now when they are driving, so I doubt they will be able to when the computer is doing it. Though maybe the computer will be able to pause the YouTube video when there’s an issue that require’s human attention.

Innovation & Education
Schmidt said there’s low morale in the US, which is a demographic problem, a global problem, and an automation problem. He seemed to be saying there was low unemployment because software and globalization are taking over jobs, but he felt that more innovation was the solution. He said the platforms created by Google and their competitors can create many job opportunities in the US.
The solution is also to improve education to help innovation. Currently, the gap between the elite and everyone else has widened, but it needs to be closed. Mossberg asked if he things online MOOCs like Udacity are the future even for the elite. Schmidt replied that these new initiatives are just version 1 and that they glimmer with possibility, i.e. yes. He said there has been very little innovation and real competition in education but these new online offering are changing that.

If technology is part of the problem of low-employment, perhaps increased innovation will just make things worse? However, improving technology has not caused long-term unemployment, since it has always created new markets for people to spend their money on. So the online platforms may provide many more new jobs. This type of work is not for everyone though, and better education won’t necessarily help. However, I don’t think there’s an immediate risk of widespread unemployment.
I think Schmidt hit the nail on the head about the potential of online education. Who more than the head of Google recognizes the power of software to revolutionize industries? He stressed often how competition drives innovation and lowers prices. This is something the government-backed system of education sorely lacks, but there is now potential for change.

The overall theme that emerged from this discussion was the power of innovation. By allowing competition that isn’t restricted by unfair patents or over-reaching unions, great things can be developed that will benefit everyone.